Tina gave Zach a cheque for $1000 to pay for a TV. Zach took the cheque to Cash Mart, endorsed it, and Cash Mart paid him $950. Cash Mart is a holder in due course of a negotiable instrument.

Question

Quizplus · Accepted Answer

Cash Mart is a holder in due course since they received the cheque in good faith, for value, and without notice of any defects or claims against it. They are entitled to enforce the instrument and are not subject to any claims or defenses that may have existed between Tina and Zach.

Tina Gave Zach a Cheque for $1000 to Pay for a TV